Feronia Inc/Canada CAPEX surged on 124% in 2015 and Revenue jumped on 16.9%
29.04.2016 • About Feronia Inc/Canada (
$FRN) • By InTwits
Feronia Inc/Canada reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Feronia Inc/Canada doesn't have a profitable business model yet: 2015 ROIC is -40.3%
- The company operates at negative EBITDA Margin: -176.9%
- Feronia Inc/Canada spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -154.0%0
- Feronia Inc/Canada has high CAPEX intensity: 5 year average CAPEX/Revenue was 112.2%. At the same time it's a lot of higher than industry average of 8.2%.
- CAPEX is quite volatile: 11.3 in 2015, 5.1 in 2014, 8.1 in 2013, 13.6 in 2012, 9.5 in 2011
- The company has unprofitable business model: ROIC is at -40.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Feronia Inc/Canada ($FRN) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7.369 | 7.126 | 6.890 | 11.962 | 13.989 | 16.9% |
| Gross Profit | 2.832 | -2.551 | -2.983 | -5.281 | -9.801 | 85.6% |
| SG&A | 10.929 | 9.820 | 10.971 | 12.950 | 17.242 | 33.1% |
| EBITDA | -9.590 | -11.062 | -12.043 | -15.449 | -24.752 | 60.2% |
| Net Income | -5.653 | -6.658 | -10.421 | -17.287 | -27.353 | 58.2% |
Balance Sheet
|
|---|
| Cash | 13.746 | 1.254 | 19.399 | 0.921 | 7.240 | 685.8% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 40.621 | |
| Long Term Debt | 0.000 | 3.900 | 4.381 | 6.393 | 11.699 | 83.0% |
Cash flow
|
|---|
| Capex | 9.502 | 13.640 | 8.086 | 5.068 | 11.327 | 123.5% |
Ratios
|
|---|
| Revenue growth | 83.2% | -3.3% | -3.3% | 73.6% | 16.9% | |
| EBITDA growth | 47.4% | 15.3% | 8.9% | 28.3% | 60.2% | |
| Gross Margin | 38.4% | -35.8% | -43.3% | -44.1% | -70.1% | -25.9% |
| EBITDA Margin | -130.1% | -155.2% | -174.8% | -129.2% | -176.9% | -47.8% |
| Net Income Margin | -76.7% | -93.4% | -151.3% | -144.5% | -195.5% | -51.0% |
| SG&A, % of revenue | 148.3% | 137.8% | 159.2% | 108.3% | 123.3% | 15.0% |
| CAPEX, % of revenue | 129.0% | 191.4% | 117.4% | 42.4% | 81.0% | 38.6% |
| ROIC | -54.7% | -41.7% | -30.3% | -33.0% | -40.3% | -7.3% |
| ROE | -30.9% | -24.2% | -24.6% | -32.0% | -64.0% | -32.0% |
Revenue and profitability
The company's Revenue surged on 16.9% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 8.2 pp from -13.6% to -5.3% in FY2015.
Gross Margin dropped on 25.9 pp from -44.1% to -70.1% in 2015. SG&A as a % of Revenue jumped on 15.0 pp from 108% to 123% in 2015.
Net Income marign dropped on 51.0 pp from -145% to -196% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Feronia Inc/Canada had CAPEX/Revenue of 81.0%. CAPEX/Revenue dropped on 110 pp from 191% in 2012 to 81.0% in 2015. For the last three years the average CAPEX/Revenue was 80.2%.
Return on investment
The company operates at negative ROIC (-40.30%) and ROE (-63.98%). ROIC decreased on 7.3 pp from -33.0% to -40.3% in 2015. ROE dropped on 32.0 pp from -32.0% to -64.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -7.3x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt surged on 718% in 2015 while cash surged on 686% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Feronia Inc/Canada benchmarking against other companies in Consumer, Non-cyclical industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Theratechnologies Inc ($TH) | | -9.1% | -44.3% | -10.9% | 346.4% |
| Medicure Inc ($MPH) | | 32.2% | -45.7% | 94.1% | 337.2% |
| CRH Medical Corp ($CRH) | | 23.7% | 12.5% | 56.0% | 284.2% |
| Concordia Healthcare Corp ($CXR) | | | | 159.5% | 275.7% |
| Patient Home Monitoring Corp ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| |
|---|
| Median (86 companies) | 203.9% | 9.7% | 6.0% | 12.2% | 13.3% |
|---|
| Feronia Inc/Canada ($FRN) | | -3.3% | -3.3% | 73.6% | 16.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | 92.7% |
| Medicure Inc ($MPH) | 58.3% | 77.7% | 74.4% | 82.8% | 89.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | 89.1% |
| Information Services Corp ($ISV) | 77.4% | 77.5% | 80.4% | 80.9% | 87.6% |
| Theratechnologies Inc ($TH) | 38.7% | 62.7% | 50.9% | 63.5% | 86.6% |
| |
|---|
| Median (73 companies) | 35.6% | 38.7% | 36.2% | 35.8% | 35.7% |
|---|
| Feronia Inc/Canada ($FRN) | 38.4% | -35.8% | -43.3% | -44.1% | -70.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | 61.5% |
| CRH Medical Corp ($CRH) | 22.1% | 21.0% | 24.5% | 29.1% | 44.1% |
| Ceapro Inc ($CZO) | 18.2% | -2.6% | 9.1% | 23.4% | 41.9% |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | 39.8% |
| Concordia Healthcare Corp ($CXR) | | | 43.7% | 37.0% | 39.8% |
| |
|---|
| Median (84 companies) | 7.5% | 7.4% | 9.0% | 10.6% | 10.2% |
|---|
| Feronia Inc/Canada ($FRN) | -130.1% | -155.2% | -174.8% | -129.2% | -176.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | 119.0% |
| CanaDream Corp ($CDN) | 68.6% | 43.3% | 38.1% | 70.4% | 63.4% |
| Westbond Enterprises Corp ($WBE) | 3.5% | 7.6% | 2.4% | 4.7% | 39.5% |
| Ceapro Inc ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | 39.4% |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (85 companies) | 2.2% | 2.6% | 2.4% | 2.5% | 2.3% |
|---|
| Feronia Inc/Canada ($FRN) | 129.0% | 191.4% | 117.4% | 42.4% | 81.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Medicure Inc ($MPH) | | | -127.1% | | 129.4% |
| Response Biomedical Corp ($RBM) | -75.0% | -158.5% | | | 52.0% |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | 50.4% |
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | 48.2% |
| Immunotec Inc ($IMM) | -11.5% | 1.8% | 8.8% | -10.5% | 40.8% |
| |
|---|
| Median (86 companies) | 8.0% | 6.7% | 6.7% | 7.3% | 6.3% |
|---|
| Feronia Inc/Canada ($FRN) | -54.7% | -41.7% | -30.3% | -33.0% | -40.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Iron Inc ($NIR) | | 25.5x | 12.9x | 227.3x | 244.1x |
| Family Memorials Inc ($FAM) | | | | 15.2x | 84.3x |
| Concordia Healthcare Corp ($CXR) | | | -1.3x | 5.6x | 20.2x |
| CIBT Education Group Inc ($MBA) | | -7.0x | -0.3x | | 18.4x |
| SunOpta Inc ($SOY) | 2.9x | 2.9x | 3.5x | 1.3x | 16.9x |
| |
|---|
| Median (71 companies) | 1.9x | 2.8x | 2.2x | 2.7x | 1.9x |
|---|
